You hold a straddle on a stock that you bought a month ago and that still has two months to expiry.Assume the options are European.An unexpected increase of $1 in the price of the stock

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A straddle involves buying a call and a put option on the same stock with the same strike price and expiration date. An unexpected increase in the stock price can increase the value of the call option (beneficial for the straddle), decrease the value of the put option (detrimental for the straddle), or the effects can offset each other to some extent, leaving the overall value of the straddle increased, decreased, or unchanged depending on the specific price movements and implied volatility changes.

You Hold a Straddle on a Stock That You Bought